Moydow, Normandy test Ntotoroso’s zone E

Partners Moydow Mines International (MOY-T) and Normandy Mining (NDY-T) have wrapped up a program of infill drilling at their Ntotoroso gold property in northwestern Ghana’s Sefwi gold belt.

The US$1-million, 7,000-metre program consisted of 39 reverse-circulation and diamond-drill holes that tested the northern portion of zone E, one of several mineralized zones.

Drilling into this northern portion was carried out on a 50-by-25-metre grid in preparation for a resource estimate, to be calculated by Denver-based consulting firm Pincock Allen & Holt.

Moydow, which currently serves as operator, says the latest drill results show that gold mineralization in zone E continues to display good continuity.

Highlights from this latest work include:

– 48 metres (from 125 metres) grading 5.03 grams per tonne gold in hole 293;

– 101 metres (from 58 metres) of 3.28 grams gold in hole 297;

– 62 metres (from 50 metres) of 3.45 grams gold in hole 298;

– 35 metres (from 42 metres) of 3.97 grams gold in hole 304; and

– 56 metres (from 313 metres) of 4.11 grams gold in hole 313.

Further drilling will test zone E along strike and at depth, as well as some newly identified targets.

In November 1999, Moydow raised gross proceeds of $5.7 million through an oversubscribed issue of 3.4 million special warrants priced at $1.70 apiece. Each special warrant is exchangeable for a unit consisting of one share and half a non-transferable share-purchase warrant. A whole warrant entitles the holder to buy another share for $2.25 until Nov. 24, 2000.

Moydow now has $7 million in cash. Most of the proceeds from the financing will fund Moydow’s participation in the Ntotoroso project, once Normandy has spent another US$2.4 million completing its earn-in to a 50% level.

Having spent almost US$4.9 million on exploration, Normandy now has a beneficial interest of about 46% in Ntotoroso. Moydow holds the remaining interest, though the Ghanaian government will assume a 10% carried interest once the project reaches an advanced stage.

Elsewhere in Ghana, Moydow reports that its Wassa open-pit gold mine is currently producing at the same rate as last year. In 1999, its first year of operation, Wassa poured more than 87,000 oz. gold.

Moydow holds a 31% indirect interest in the mine through Wassa Holdings. The mine’s Irish-listed operator, Glencar Mining, has withdrawn a proposed rights issue and is in talks with a major mining company with a view to offering an equity stake in Glencar or its properties. Moydow has a right of first refusal on any direct or indirect sale of shares of Wassa Holdings.